Web.alive is Nortel's innovative 3D virtual environment platform designed to enhance communication and collaboration for businesses in e-commerce, e-learning, and enterprise collaboration. It addresses challenges such as poor audio quality in conference calls, high travel costs, and the need for real-time collaboration by providing immersive experiences and seamless integration with existing software. By facilitating interactive environments where users can engage with one another and with products or content, web.alive fosters a more dynamic and efficient working and learning atmosphere.

1. Overview June 8, 2009

2. web.alive - Nortel’s Entry Into The World of 3D Virtual Environments

3. STATIC COMMUNICATION WEB.ALIVE COMMUNICATION web.alive Empowers User Communication & Collaboration “ Much of today’s technology leaves communication problems unsolved. Working together in real time while in separate locations is every challenging. Travelling to conferences and events is expensive and often discretionary. While at the same time, training on complex equipment or in hazardous environments is costly and risky” Source: Forrester Research, Inc.

4. web.alive Empowers User Communication & Collaboration STATIC COMMUNICATION Forms: One-to-One Telephone E-Mail Webinar Instant Messaging Characteristics: Individual-driven Limited free form discussion No ability for side-bar conversations Not empowering Forms: web.alive Meeting web.alive Training web.alive Collaborative E-Commerce Informal web.alive collaboration Characteristics: Interconnected Global Instantaneous Free form discussion Empowering web.alive WEB.ALIVE COMMUNICATION

5. The Technology Behind web.alive is Industry Leading Visually Stunning Detailed 3D visual environments which can be created from artistic concept, architectural drawings or any combination of 3D assets and environments Users can interact with 3D objects in meaningful ways based on their virtual scenario needs Avatar selection can be extremely personalized or set to a limited subset of avatars Revolutionary Audio Nortel acquisition of Diamondware (3D positional audio technology) ensures n audio experience that parallels real life in terms of sound quality and propagation Enterprise Integration Enterprise integration for security, identity and context Situation-based, contextual information about individuals or objects in the environment Interacts With Existing Software An architecture that enables web.alive to function analogously to the traditional web paradigm Connect to and utilize information from existing business software (e.g. CRM in virtual shopping)

6. Addressing 3 Distinct Business Markets E-Commerce E-Learning Enterprise Collaboration

7. Addressing 3 Distinct Business Markets E-Commerce E-Learning Enterprise Collaboration Over 30% of conference call participants report not being able to hear at least one speaker Over 25% could not identify which individual was speaking Calls actually cause your mind mental exhaustion trying to process poor audio Travel costs are rising at the same time as travel budgets decrease Current solutions only address part of these issues

8. web.alive Tackles Today's Business Needs & Address Gaps Business Needs Increasing need for remote collaboration due to outsourcing, mergers & acquisitions Increasing travel costs & reduced travel budgets Increasing desire & need to make business more “Green” Need to collaborate on documents in real time with colleagues, customers and partners world-wide in a secure environment Existing Solutions Existing collaboration tools limit free-flow between interaction styles (e.g. from broadcast to one-to-one etc…) Lack enterprise integration and do not address the need for corporate security Provide little contextual information about users & lack ability to regulate users based on network permissions or hierarchy

9. web.alive Is Built For Business First Context Software Integration 3D Spatial Audio Security

10. web.alive Is Built For Business First - Context Eliminates the question of who is present/speaking Ability to visually represent relationships between individuals Ability to easily know who spoke when (track idle time etc…) Ability to exchange information with people based on contextual scenario and constraints Software Integration 3D Audio Security

11. web.alive Is Built For Business First - Security Context Software Integration 3D Audio Users either authenticated by network credentials or given anonymous log-on e.g. partners) web.alive platform exists within your secure network protecting confidential information Ability to log conversations, save sessions and securely store for compliance needs Ability to set user permissions based on network identity

12. web.alive Is Built For Business First – Software Integration Context Every business uses specialized business software (CRM) in at least one area Existing virtual world solutions are stand-alone applications which do not interact with existing software web.alive allows users (based on their network credentials) to pull information from existing software and utilize that information “in-world” Business users are able to collaborate in real time using existing files 3D Audio Security

13. web.alive Is Built For Business First – 3D Audio Context Software Integration Security 3D spatial audio allows the human ear to determine where a sound originates from (e.g. left, right etc…) In virtual scenarios many users may speak at the same time – this can be confusing and exhausting web.alive 3D audio allows for easy round table discussions (voices are spatially placed based on an individual’s location) web.alive 3D audio allows for side-bar conversations and selective muting

14. Addressing 3 Distinct Business Markets E-Commerce E-Learning Enterprise Collaboration Almost 60% of shopping carts are abandoned by consumers prior to purchase Blogs, Forums and other Web 2.0 sites prove consumers desire & are influenced by information from other consumers Today’s online shopping experience happens in isolation offering no opportunity for consumer collaboration The online shopping experience has not fundamentally changed since the inception of e-commerce

15. web.alive Helps You & Consumers Connect In An Immersive Shopping Experience Consumer Trends Increasing consumer influence and power over fellow consumers through blogs, forums and other social media Increased consumer consumption of product information online versus in-store Increased desire for continual touch points with brands online (e.g. expect more than just a simple website today). Increased expectation of after purchase support (e.g. Apple Geniuses) Existing Solutions Shopping carts at e-commerce stores are abandoned almost 60% of the time prior to purchase Lack ability for customers to communicate with each other about purchasing decisions and options in ‘real time’ Provide a shopping experience completely dissociative with the real-world experience Lack the opportunity to recreate in-store events and connect with consumers

16. web.alive Creates A Fundamentally Different Shopping Experience Consumer Empowerment Experience vs Look Brand Connection Security

17. web.alive Allows Consumers To Share In An Interactive Store-Like Experience Customers are able to talk to one another about products, upgrades and troubleshooting all an immersive real-time experience Multiple customers are able to interact with a single store employee much as they would in the real world “ In-store” product demonstrations, classes and other consumer engagements are possible online Customers may be assisted through the checkout process as they would be in-store, ensuring completion of purchase Experience Brand Connection Security

18. web.alive Is Built With E-Commerce Security & Consumer Privacy In Mind Consumer Empowerment Experience Brand Connection Users either authenticated by store account or given anonymous log-on (e.g. to browse) web.alive platform exists within your secure network protecting confidential consumer information Store employees are able to retrieve customer information (e.g. previous purchases, support requests) from CRM and other existing software Only public information (e.g. chosen username) is available to other consumers in the same space

19. web.alive Is An Immersive Shopping Experience Consumer Empowerment Today’s e-commerce store offers little opportunity to explore more than photos of purchase items Products are not only displayed, but able to be experienced through both 3D graphics and 3D audio Consumers are able to actually pick up and hold items to inspect them – no more point and click Requesting assistance no longer requires an email, FAQ or call-centre experience – specialists are available on site – just walk up and talk to one Brand Identity Security

20. web.alive Allows The Continuation of Your Brand In A Unique Online Experience Consumer Experience Experience Security Traditional e-commerce stores have virtually no connection to a brand beyond the logo on the site web.alive allows for the recreation (& betterment) of the in-store experience by allowing the creation & customization of visually rich 3D immersive stores that can be exactly the same as a physical location web.alive allows you to connect with consumers online in ways that previously were only possible through being physically present at a store – product demonstrations, ‘Genius’ bars, and tutorials are now available to anyone, anywhere at the time of your choosing

21. Addressing 3 Distinct Business Markets E-Commerce E-Learning Enterprise Collaboration The need for continuing education and training is increasing both in the enterprise and within the private educational field Universities are restricted by increasing class sizes with limited campus space Companies desire a cost and time effective way to learn without having to travel or create costly real world scenarios Current distance learning options are largely broadcast based (one to many) with limited opportunities for interaction between participants

22. web.alive Allows E-Learning Experience To Become Completely Immersive Virtual Learning is Growing Nearly every major university world-wide has a distance education program Increased consumer demand for higher education and business demand for employee training/executive learning has increased the need for learning institutions to provide an online experience that allows for real-time collaboration Existing Solutions Lack the ability for student interaction with one another in a real-time immersive environment all from dispersed locations Do not allow for the learning environment to change based on the curriculum

23. web.alive Creates A Fundamentally Different Learning Experience Student Engagement Customized Environments Software Integration Security

24. web.alive Allows E-Learning To Truly Become A Shared Immersive Experience Students are able to talk to one another and the facilitator in a real-time 3D audio based immersive setting Students can share work, collaborate on assignments and physically move around the classroom to interact Facilitators can give presentations, show videos and operate a shared white-board to recreate an real world classroom Learning can now involve existing real 3D objects digitized at museums and other historical places Customized Environments Software Integration Security

25. web.alive Is Built With Security & Student Privacy In Mind Student Engagement Customized Environments Software Integration Users either authenticated by pre-existing account or given anonymous log-on web.alive platform exists within your secure network protecting confidential student information Class facilitators employees are able to retrieve student information (e.g. class grades, class schedule) from your secure information system Only public information (e.g. chosen username) is available to other students in the same space

26. web.alive Is Allows You To Customize Your Learning Environment Student Engagement The classroom environment is only limited visually by the design parameters you set Real-world training scenarios can be recreated in web.alive with increased safety and reduced costs Students are able to interact with items (e.g. a historical relic) to inspect them – no more point and click pictures Corporate learning and team building can virtually take place in any setting, in any place at any time Software Integration Security

27. web.alive Allows For Interaction With Existing Learning Software Student Engagement Customized Environments Security Existing learning software (e.g. attendance tracking, student information) can work with web.alive so that learning institutions do not need to replace existing software systems Integration with existing software allows proper contextual information (e.g. class attendance, participation etc…) to be available for the course facilitator Individual classes may be recorded and uploaded to a course website for review by students

28. Addressing 3 Distinct Business Markets E-Commerce E-Learning Enterprise Collaboration Over 30% of conference call participants report not being able to hear at least one speaker Over 25% could not identify which individual was speaking Calls actually cause your mind mental exhaustion trying to process poor audio Travel costs are rising at the same time as travel budgets decrease Current solutions only address part of these issues Almost 60% of shopping carts are abandoned by consumers prior to purchase Blogs, Forums and other Web 2.0 sites prove consumers desire & are influenced by information from other consumers Today’s online shopping experience happens in isolation offering no opportunity for consumer collaboration The online shopping experience has not fundamentally changed since the inception of e-commerce The need for continuing education and training is increasing both in the enterprise and within the private educational field Universities are restricted by increasing class sizes with limited campus space Companies desire a cost and time effective way to learn without having to travel or create costly real world scenarios Current distance learning options are largely broadcast based (one to many) with limited opportunities for interaction between participants

29. web.alive Will Save Travel Costs & Allow For Increased Productivity Total Travel To Meetings Number of people who traveled to meeting = 5 Average number of meetings per year = 12 Average unburdened salary per year = $100,000 Average days per trip = 3 Average days spent in transit per trip = 1 Total productivity lost in transit per year = $57,692.30 External Travel Costs (per person) Airport parking costs = $50 Taxi/car rental cost during the trip = $100 Cost of airline ticket = $650 Hotel cost per night = $200 Per diem = $75 Total External Travel Costs = $161,250.00 Percentage of meetings converted to web.alive = 40% Total Potential Cost Savings Using web.alive = $87,576.92

30. Our Place In The Business Collaboration Space Low High Level of Immersion High Low Enterprise Integration YouTube Second Life Lively (Google Labs) Facebook MySpace Metaverse Active Worlds Skype MS Live Meeting Regular Voip IM IBM Jazz web.alive WebEx Forterra Click2Call IBM + 2 nd Life Qwaq Forms Telepresence Voice Conference

31. 3D Diamondware Audio Built Directly Into web.alive 3D Positional Audio Example - Click Small Speaker To Play -

32. Full Customization Available

33. Web.alive Is Visually Immersive & Simply Stunning

34. Questions?

35. Public www.nortel.com/webalive www.projectchainsaw.com www.youtube.com/watch?v=qiYi3iEBJNM www.youtube.com/watch?v=PtwEr6KTmKc Nortel internal Please copy and paste into your browser: http://bizsphere.us.nortel.com/?link=S8b5fdce9-32c2-4388-b4ce-8e80868c97ed Further resources